Hourly Rate

[graphicmetals]

We are trying to come up with an hourly rate for running our ShopBot. Not counting labor costs, what is a reasonable figure?

-Kevin

[Dan Brown]

Kevin

From what I've read on this forum and talking to a local shopbotter $30.00 to $50.00. Also you must consider what the market will bear. In my region $30.00 might be all I can get. However regions in and around New York City could get up to $75.00.

Dan

[elcruisr]

Kevin,
most people will probably play their cards pretty close due to the competitive nature of our business. We price our work as cutting time which includes both operator and machine. You also have to factor tooling cost into a job bid and depending on work this can vary widely. Then there is any time for setting up any special holding jigs and time on the computer setting up the files. My bids will specify each item seperately to the potential customer and I am staying fairly busy. A typical proposal will have .5 to .75 hours computer time, anywhere from 10 to 200 dollars for tooling then the calculated time on the machine and cost. Don't forget to include a handling / packaging / shipping fee if there is much of that involved as well. To be competitive in our area we have to be flexible on our hourly pricing. There are alot of cnc machines around and we are up against a few shops with $200,000 screamers. Even at that we still win bids by being flexible. We've worked as cheap as $30/hr (For a good customer who was too tight on his own bid) and as high as $100/hr (another good customer who said he had lots of room in his bid so price it high). The trick is to learn how to feel out the customer and his market. Building relationships with the customer base goes a long way in building a competitive pricing guide.

Eric Lamoray

[dands50@hotmail.com]

Kevin if you are going to do signs there is a great pricing guide book put out by signwriters publishing company (406)252-2214 if you are going to do wood working then that is another story. As Eric stated above you have to take into account all of the time involved like the time on the computer and everything else. The Bot at my shop gets $60.00 an hour and I get $65.00 on computer time. The pricing guide I mentioned has a section on cnc routing and they say in the 1997 issue a large sign say 2" thick by 4'x 8' made out of Redwood or cedar would run about $1,920.00 including labor and material with custom art work extra at $50.00 an hour for computer time to do the art work. I think that is close I can get about that price up here in a little town in Wyoming so anyone should get that. David in Wyoming P.S. that is for a single sided sign

[rookie432]

David, Kevin

My 2001 price guide say's about$86 per board ft for routed letter and $95.50 for routed backround
that puts us between $2750 and $3056 for 4'x8'
I usually start there and work downwards so the customer feels he's getting a good price.
Other than v carving I don't think cedar and redwood cut all that clean for routing purposes so I use a well painted and clearcoated hardwood like white oak, mahogony, or poplar which has been used as barnsiding and lasted 80 years around here.
I average $60 per board ft on routed letter and $75 for rased letter i.e. routed backround. of course this is fairly flexible both ways depending on the design, gold leafing etc
I have found that knowing your bottom line price and the list price gives fair negotiating room and you can both walk away happy.

[papadaveinwy]

Bill that is exactly what I do.I used the '97 rate to give a basis that just about everyone can use no matter where they are.I too have a negotiating room built in to my pricing. David in Wyoming

[sbarnett]

What is the operating cost ($/hour) for the shopbot? How long should one last? What periodic maintenance is required? What is the cost of the maintenance?

[jimmyz]

Hi Sam

Each job is different.

Here is how we figure it, in general. We operate at a flat rate of about 65.00 - 70.00 per hour. (NJ area)

40.00 for labor(which includes salary and benies), 10.00 for equipment maintenance, bits, etc., 5.00 - 10.00 per hour electricity ( which includes space in the shop for rent) and a profit of 10.00 per hour back to the business for misc. (this is for computer time or machine cutting time...)

In the end, it is what the market will bare.

In general, the length of time a "shopbot" will last, from what I was told, is dependant on usage, router type, etc.. (This is why we allot 10.00 for equipment, replacement, etc.) After 1 year, at 20 hours a week usage, I have monies to replace anything that goes bad. (yet to happen after 1 year of service.)

At a recent NJ shopbot camp, people told me they us it for up to 17 hours at a shot. I found this to be impressive with few issues. (and these machines were at least 5 years old... )

We found that based on this formula and the fact Shopbot does not ask for "overtime pay" it is very profitable on Sundays as long as I'm the one using it ;-).

I think there are a lot of ways to calculate what your asking. I also would like to know how people are running their machine from a "business expense" and what they have learned.....

Regards, Jim Zaccaro - CCI

www-custom-creations-inc.com

[sbarnett]

I was talking strictly my operating cost. Good break down. Thanks.

[campbellj132@hawaii.rr.com]

Don't forget that bill you submit should have your state tax on it. you have to pay it so you should pass it on to the customer.

[grandpas@ix.netcom.com]

Collection of sales tax in most states is not optional. It is required by business license and usually county DBA (Doing Business As) for your correct banking. If you ever have any kind of Tax audit, you may be sorry you didn't. Your liable whether you collected it or not. The cost of the Resale permit is usually around $10.00 for a 5 year period and gives full particulars on collection and rates by location. In most states you pay annually unless sales are over $XXXX.00 amount. Paperwork in minimal to file. If I do trade shows in certain locations, The State Sales tax collector is at the door when I leave and collects his check. If you only do wholesale to others and they may require you to get purchasers resale permit number and keep it on file.
It's just easier to get the resale permit and collect. With that you purchase all supplies and materials tax exempt yourself and sales tax is only applied on finished product.
While you don't set sales tax rates. You may be REQUIRED to collect it by law.
respectfully
Dale Grabowski